Plan to increase the FPI limit on corporate bonds to 15% from 9%: Sitharaman

NEW DELHI: The government plans to increase the investment limit of () in corporate bonds from 9% to 15%, Finance Minister Nirmala Sitharaman said Saturday.

In her second budget presentation, the finance minister said that certain government securities will be open to foreign investors.

He also proposed negotiated debt exchange funds that mainly comprise government securities, while stating that Rs 22 billion rupees has already provided support for the infrastructure project portfolio.

To address the liquidity restrictions of NBFCs and housing finance corporations, the government will launch a partial credit guarantee scheme, he added.

Live plus Sitharaman said a scheme will be introduced to provide subordinated debt to MSME entrepreneurs.

The government has asked the RBI to extend the debt restructuring window for MSMEs for one year until March 31, 2021.

In addition, a National Recruitment Agency will be established to conduct common online eligibility tests for recruitment in positions not published in the publication, the finance minister said.